Most people spend decades chasing this dream—only to regret it later
Summary
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Buying a home isn’t always the smartest path to wealth—it might be the slowest.
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The 65-20-15 rule helps you build wealth with clarity and balance.
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Saving alone won’t make you rich—inflation will silently eat your cash.
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Index funds offer steady, low-effort growth that outpaces real estate in most cases.
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Financial freedom comes from control, not just ownership.
This post is a detailed summary of the video “They’re Lying To You About Buying a House! My 65-20-15 Rule Built $200K Passive Income!” from The Diary of a CEO featuring Nischa Shah. It explores why buying property might delay financial freedom, the emotional traps behind money decisions, and how simple investing strategies can build real wealth. All insights are based on Shah’s personal experience and professional guidance as a financial expert. Who is Nischa Shah—and why should you trust her?
Nischa Shah is not your average finance YouTuber. She’s a qualified accountant and former investment banker who left a six-figure salary to teach personal finance full-time.
Her advice is:
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Rooted in real-world banking experience
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Free of jargon and fluff
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Built to help anyone, regardless of income
With over 1 million subscribers on YouTube, she’s helping people escape paycheck-to-paycheck cycles and build a life they own—not one shaped by debt or outdated financial scripts.
The Trap Everyone Falls Into
We’re told from a young age:
“Buying a house is the smartest thing you can do with your money.”
But here’s the reality:
Nischa bought a home in London in 2017. After 8 years? The property value increased just 10%. Meanwhile, the S&P 500 index more than doubled in that time.Let that sink in.
Buying a Home = Owning a Liability?
The problem isn’t just the house—it’s the true cost behind it:
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Mortgage interest
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Property taxes
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Maintenance & insurance
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Upfront fees like stamp duty
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Illiquidity (you can’t access that money without selling)
“Wealth is not about what you own. It’s about how your money grows.”
If your mortgage payment is $2,000 but you could rent for $1,500—and invest the difference—you could come out far ahead over the years.
The 65-20-15 Rule That Changed Everything
Nischa’s signature money framework helps people take control without spreadsheets or stress:
65% → Essentials (rent, bills, food)
20% → Fun (travel, restaurants, hobbies)
15% → Future (investments, savings, debt payoff)
It’s:
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Simple•
Adaptable•
Powerful“Your money should feel like freedom, not a trap.”
Saving Isn’t Enough Anymore
Inflation is real. It’s invisible. And it’s eating your cash while you sleep.
That’s why Nischa says:
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Only save for your emergency fund (3–6 months expenses)
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Or short-term goals (next 1–5 years)
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Don’t hoard money in your bank account long termOnce your basics are covered, it’s time to invest.
Where Should You Put Your Money?
If not into a house, then where?
Here’s what Nischa recommends:
1. Index Funds (like S&P 500)
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Low-cost, diversified, and long-term growth
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Historically 8–10% annual return
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Set it and forget it—no market timing needed
2. Tax-Advantaged Accounts
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ISA (UK) or Roth IRA / 401(k) (US)
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Let your money grow tax-free
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Some employers even match contributions = free money
“Time in the market beats timing the market.”
Even investing $100 a month consistently can make you a millionaire over time.
Passive Income Isn’t Passive (At First)
Nischa is honest about this:
“Most passive income streams aren’t passive at all… in the beginning.”
Whether it’s:
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A YouTube channel
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A digital product
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An investment portfolio
…they all require upfront effort. But once they’re built, they run on their own—money that works even when you don’t.
Final Thoughts: Own Freedom, Not Just a House
Buying a home can be a great decision. But it’s not always the smartest one.
Ask yourself:
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“Am I buying this for security?”
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“Or because I think I have to?”
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“What could this money do elsewhere?”
“Your dream should be freedom—not furniture.”
You don’t need a mortgage to be an adult.
You don’t need a house to be wealthy.
And you certainly don’t need to follow outdated scripts.
Nischa’s parting wisdom?“Most people don’t realize they have a choice—until they’re already stuck.”
Don’t wait that long.
Start building your own version of wealth—on your terms.